Applying for Social Security Disability benefits can be a lengthy process. Disability claims are taken by your local Social Security office and then transferred to a State disability agency for evaluation. Here is all you need to know about the timeframes when applying for disability benefits.

The first step to apply for disability benefits is to schedule an appointment with your local Social Security office or submit your application online. It can take as long as two weeks to get an appointment date depending on how busy the Social Security office is in your area. You can apply online at Social Security’s website; regardless of the method of your application you will need to provide proof of citizenship or legal residence for your claim. You will also need to provide the names and address of any doctors, hospitals, or clinics you have been seen at so Social Security can request records to support your claim.

Once you have submitted your application the local Social Security office will take about thirty days preparing it for transfer to your State’s disability agency. Your disability is evaluated by an agency of your State’s government called Disability Determination Services; this agency takes an average of 120 days to evaluate your medical evidence and make a determination.

If you receive a favorable decision on your disability claim from the State, your claim will be transferred back to Social Security and sent to a regional payment center to be processed for payments. Social Security payment centers do not take telephone calls from the public; they simply process payments, so you will not be able to contact the payment center for status updates. This payment center will typically take 60 days to finalize processing of your disability claim before you will receive an award letter and your first check.

As you can see, applying for disability benefits can be a lengthy process. Social Security can take as long as seven months to get you a check. If you have a medical condition that is expected to result in your death you can speed up the process by identifying yourself as a terminal patient when you schedule your application appointment. To learn more about applying for disability benefits visit the website “Social Security Laid Bare” using the links below.

Jack Burton specializes in helping people understand Social Security programs for Retirement, Medicare, Supplemental Security Income (SSI), and Disability Benefits. The website Social Security Laid Bare presents information on all of Social Security’s programs in an easy to read format, without technical jargon. For more information visit Social Security Laid Bare: http://www.socialsecuritylaidbare.com

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1. Buying based on Fear

Although there are cases where an individual may require Long Term Care services for
10 years or more due to Alzheimer’s or other chronic illnesses, these cases are infrequent. Out of $1Billion dollars spent on actual claims by insurance companies over the last 10 years, 98% of all claims were closed in 60 months. 93% of all claims were closed in less than 36 months. If you buy a policy that covers care for 5 years, you will be covering 98% of the statistical risk. Be careful if you do not have the resources to
cover costs over this amount of time. If you buy a Lifetime plan, consider reducing the daily benefit and self insuring part of the cost.
Some companies offer a “Shared Care Rider” that will allow you to borrow benefits from your spouses policy allowing you to save money while still getting a great policy.

2. Buying the lowest price

Some insurance companies may underprice their policies to attract buyers. The price may seem great at the time, but beware of price increases. Some
companies using this strategy have had rate increases as high as 50% in one year. If you buy one of these policies, be sure and add the nonforfeiture option in case you get an unaffordable rate increases in the future and have to cancel. When this happens you may be unable to change companies due to a health change and higher premiums due to your increased age.
Ask your agent how often the company has raised rates on current customers in the past. Also ask if the company can increase the rates on you. If they say NO, kindly ask them if they would put that promise in writing. Guaranteed Renewable does not mean rates will never go up. It is rare that changing companies after a few years is a good thing to do. Proceed with caution when an agent recommends you cancel a current policy for another based solely on price unless you are getting a top rated
carrier with similar benefits.

3. Buying from a “small” company

Top rated high asset based companies are usually the safest to do business with. They have a proven track record. Ask your agent about the size of the company and consider only offers from large companies such as Allianz, Met Life, Prudential, Mass Mutual, Great American, Genworth, John Hancock…Some of these companies have never had a rate increase on existing customers, but they do not guarantee they never will. If you have questionable health, you may only be able to buy from smaller companies willing to take the risk at higher prices or lower benefit levels. (Penn Treaty)
These will probably be priced at higher rates -GULP. It is also advisable to use an agent with access to several of these companies so you can get the best policy/price blend. Rates can vary by as much as $700 per year due to age and health at the time of purchase, so it pays to let your agent shop this business to several companies. (Weiss, Standard and Poor’s, AM Best) are insurance rating companies. Ask your agent for the ratings from these companies and make sure you understand what they mean.

4. Belief that Medicare will cover your 90 day elimination period

Medicare pays the first 20 days of “SKILLED” care after you have been hospitalized. You or your Medicare supplement policy pay over $119 per day(2006) (this copay may go up annually) copay for the next 80 days assuming you are still recieving “skilled” care. Medicare DOES NOT pay for any custodial care. You must be able to pay $130+ per day (varies by state)
or over $12,000 for a 90 day elimination period. Remember this amount increases annually with inflationary pressure. In 20 years this could be $36,000. Be careful when deciding on this feature. You may be able to get a 0, 20, 30, 60, 90, 100, 180 or even 360 day deductible. Cost is higher with fewer days selected but well worth it.

5. Buying nothing if one spouse is uninsurable

Although it seems unfair for an insurance company to decline someone, they are insuring a risk that will eventuually effect as much as 50%+ of the population (New England Journal of Medicine). It is unwise to think you are punishing the insurance company by declining coverage on the healthy spouse. The healthy one today could be the first one to need care tomorrow. Consider adding indemnity benefits to your own policy to make up for the difference.

http://www.robertbscott.com

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